Residential auction markets set to become busy again: Shana Miller

Residential auction markets set to become busy again: Shana Miller
Shana MillerDecember 7, 2020

CoreLogic RP Data is currently tracking 2,871 auctions across Australia this week and 2,295 of these are in the capital cities. At the same time last year, auction volumes were lower at 2,053.

Last weekend marked the final weekend for auctions in April and while the number of auctions was low, the combined capital city clearance rate remained strong, showing that the demand for the homes that did make it to auction did not waver. The final auction clearance rate for last week was 82.3% across 604 auctions. While last week’s clearance rate is the strongest result on record, given Anzac Day, auction volumes were around 70% lower than the average number of auctions that has been held each week so far this year.

Last week’s result brings the April clearance rate for the combined capitals to 78.8%, well above the same time last year when the clearance rate over the month was 66.4% and higher than the 76.6% recorded in March.

Currently, there are 1,033 auctions scheduled in Melbourne for this week, compared to 891 at the same time last year. Last week, the clearance rate across the 183 auctions held was 86.6%, a strong result, despite the low volume. Last week’s result brings the clearance rate for April to 79.7%.

In Sydney, the auction clearance rate for last week was 89.7% across 285 auctions. The result was the strongest on record for the city; however, given the low number of auctions, it could be argued that it was not as significant as the 87.0% recorded across 988 auctions the previous week. This week, Sydney is expecting 815 residential auctions. Over the past four weeks, April proved to be a strong month for Sydney, with the auction clearance rate above 83% each week.

There are 172 auctions expected across Brisbane this week, compared to 41 last week and 142 at the same time last year. The final auction clearance rate was recorded at 61.5% for Brisbane last week, a strong result for the city.

This week, Adelaide is expecting 156 auctions, up from 59 last week and 97 at the same time last year. Last week Adelaide’s clearance rate was 59.2%.

Canberra’s auction clearance rate from last week was 71.4% with just 23 homes taken to auction. This week, CoreLogic RP Data is expecting 55 auctions which are relatively similar to the 47 homes taken to auction one year ago.

There will be 43 Perth homes taken to auction this week, up from 12 last week and 41 at the same time last year.

The highest volume of auctions for any one individual suburb this week is outside of the main capital city auction markets in Armidale, New South Wales. Currently, CoreLogic RP Data is tracking 21 Armidale homes that are set for auction this week. The number of auctions scheduled in the Victorian suburbs of South Yarra (18) and Reservoir (17) is also high.

Shana Miller

Shana Miller is a research analyst with RP Data.

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